On March 25, 2026, the Ontario government announced the biggest housing affordability measure in years: a temporary expansion of the HST rebate that removes the full 13% tax on newly built homes. For a buyer purchasing a $1 million new build, that's up to $130,000 back in your pocket.
This isn't a rumour or a campaign promise. It's a signed agreement between the Ontario and federal governments, taking effect April 1, 2026. Below is everything you need, no fluff, just facts sourced directly from the official Ontario announcement.
August 2026 Update: The Rebate Is Now Law, Both Halves
When this article was first published the program was still a budget proposal, and through the spring only the provincial 8% portion was being credited at closing. That has changed. As of summer 2026 both the provincial and the federal halves are enacted law, the CRA forms are live, and the relief is retroactive to April 1, 2026. Here is where things actually stand today:
- Provincial side is law. Ontario Bill 114, the HST Relief Implementation Act, received Royal Assent on May 12, 2026, and Ontario Regulation 196/26, which finalized the provincial top-up, was made on June 22, 2026.
- Federal side is law too. Federal Bill C-26 received Royal Assent on June 18, 2026, with the supporting federal regulations (P.C. 2026-610) established on June 12, 2026. The 5% federal share no longer depends on a pending bill.
- How the 5% actually reaches you: ONHAP. The federal portion is delivered through the Ontario New Home Affordability Payment. Eligibility is tied automatically to approval of the 8% Ontario Enhanced New Housing Rebate, there is no separate provincial application to file (CRA Notice 346).
- CRA forms are live. Updated Form GST190 and Form RC7190-ON are in use for builder purchases, and most builders now credit the full amount directly on the statement of adjustments at closing. Owner-built homes use Form GST191.
- Already closed? You are not too late. Because the program is retroactive to April 1, 2026, buyers who signed a qualifying agreement and closed before the forms were finalized can still apply to the CRA directly for the refund.
- Watch the builder's rebate clause. Some agreements make you liable for the full rebate amount if the CRA later denies or delays the claim, even where the price was advertised as “after rebate.” Have your lawyer read that clause before you sign.
- Anti-avoidance rules are in the regulations. You cannot terminate and re-sign a pre-existing agreement purely to land inside the rebate window. Assignments still require both the original agreement and the assignment agreement to fall within April 1, 2026 – March 31, 2027, and HST on the assignment premium is not covered.
- Owner-built timelines differ. For a home you build yourself, construction must begin inside the April 1, 2026 – March 31, 2027 window and be substantially complete by December 31, 2029, not the 2028/2031 dates that apply to builder purchases.
- Investors have a parallel program. A separate Enhanced New Residential Rental Property Rebate offers up to $80,000 per unit for qualifying purpose-built rental construction, subject to its own eligibility and construction tests.
Last verified: August 12, 2026 · Sources: Ontario 2026 Budget, CRA Notice 346, Aird & Berlis LLP, Osler, Hoskin & Harcourt LLP
Quick Facts at a Glance
$130,000
Full 13% HST
April 1, 2026
March 31, 2027
No, all buyers
No, new builds only
How the Rebate Works: Tier-by-Tier Breakdown
The rebate amount depends on the purchase price of your new home. Here's the structure announced by the Ontario government:
| Home Price | HST Rebate | What You Save |
|---|---|---|
| Up to $1,000,000 | Full 13% HST removed | Up to $130,000 |
| $1,000,001 – $1,500,000 | Maximum $130,000 maintained | $130,000 |
| $1,500,001 – $1,850,000 | Proportional decrease | $130,000 → $24,000 |
| Above $1,850,000 | Federal portion only | Up to $24,000 |
Important: "Pre-Tax" Price
The price tiers above refer to the pre-tax purchase price of the home. HST is calculated on top of this amount. For a $900,000 home the HST would normally be $117,000, and that's the amount you'd get back.
Real-Dollar Example: Buying a $750K New Build in Toronto
Let's say you're buying a new-construction condo in the GTA listed at $750,000 (pre-tax). Here's how the math changes:
That $73,500 could cover your entire down payment on a second property, furnish your new home, or stay invested. On a $1M home, you save the full $130,000.
Who Qualifies? Eligibility Checklist
The eligibility rules are more generous than most people expect. Here's the official criteria from the Ontario government announcement:
You Qualify If...
- You're buying a newly built home (house, condo, townhouse)
- Purchase agreement signed between April 1, 2026 and March 31, 2027
- Home will be your primary residence OR a residential rental property
- Construction begins by December 31, 2028
- Construction is completed by December 31, 2031
- You're a first-time OR repeat buyer
You Don't Qualify If...
- You're buying a resale (previously occupied) home
- Purchase agreement signed before April 1, 2026
- Purchase agreement signed after March 31, 2027
- The property is strictly commercial or industrial
- Construction doesn't begin by end of 2028
- Home won't be completed by end of 2031
Rental investors take note: You can purchase a new-build property for the purpose of renting it out and still qualify for the full rebate. This is a departure from previous versions of the rebate that were more restrictive.
Key Dates You Need to Know
March 25, 2026
Ontario announces expanded HST rebate in partnership with the federal government
April 1, 2026
Rebate window opens, purchase agreements signed on or after this date qualify (the program is retroactive to this date)
May 12, 2026
Ontario Bill 114, the HST Relief Implementation Act, receives Royal Assent
June 12 & 18, 2026
Federal regulations (P.C. 2026-610) established, and federal Bill C-26 receives Royal Assent
June 22, 2026
Ontario Regulation 196/26 made, finalizing the 8% provincial top-up and rebate mechanics
March 31, 2027
Rebate window closes, last day to sign a qualifying purchase agreement
December 31, 2028
Deadline for construction to begin on qualifying properties
December 31, 2029
Deadline for owner-built homes to be substantially complete
December 31, 2031
Deadline for construction to be completed (builder purchases)
Stack It: Combine the HST Rebate with Other Programs
The HST rebate doesn't exist in a vacuum. If you're a first-time buyer, you can layer it on top of multiple federal and provincial programs. We've written a complete guide to Ontario first-time buyer incentives , here's the headline version:
| Program | Benefit | Who Qualifies | Source |
|---|---|---|---|
| Expanded HST Rebate | Up to $130,000 | All new-home buyers | ontario.ca |
| First Home Savings Account (FHSA) | Up to $40,000 tax-free | First-time buyers | canada.ca |
| Home Buyers' Plan (HBP) | Up to $60,000 from RRSP | First-time buyers | canada.ca |
| Home Buyers' Tax Credit (HBTC) | $1,500 tax credit | First-time buyers | canada.ca |
| Ontario Land Transfer Tax Rebate | Up to $4,000 | First-time buyers | ontario.ca |
| Toronto Municipal LTT Rebate | Up to $4,475 | First-time buyers in Toronto | toronto.ca |
Combined potential for a first-time buyer purchasing a $750K new build in Toronto:
Up to $207,475 in savings and incentives
HST rebate ($97,500) + FHSA ($40,000) + HBP ($60,000) + HBTC ($1,500) + Provincial LTT ($4,000) + Toronto MLTT ($4,475)
Who Should Act on This, and Who Should Wait
Consider Acting Now If...
- You were already shopping for a new build or pre-construction condo
- You're renting and ready to buy, this changes the math significantly
- You want to invest in a rental property (new builds now qualify)
- You're comparing new vs. resale and needed a tiebreaker
You Might Wait If...
- You're not financially ready, a rebate doesn't fix affordability issues
- You're set on a resale home (this rebate doesn't apply to you)
- You're buying above $1.85M (limited benefit at that price point)
- You need to move in within 12 months (new builds take longer)
How to Claim the Rebate
Sign your purchase agreement during the window
The agreement must be signed between April 1, 2026 and March 31, 2027. Keep all documentation.
Your builder may credit the rebate at closing
Most builders in Ontario will apply the HST rebate directly, meaning you never pay the HST upfront. This has been standard practice for the existing (smaller) rebate.
If not credited at closing, file with CRA
You can file the GST/HST New Housing Rebate application (Form GST190) with the Canada Revenue Agency after closing. Visit canada.ca for the form.
Confirm construction timelines
Ensure your builder can begin construction by December 31, 2028 and complete by December 31, 2031 to maintain eligibility.
Context: What the Old Rebate Looked Like
Before this expansion, the HST new housing rebate was capped at around $24,000 and only available on homes under $450,000 (for the full federal rebate) and $400,000 (for the full Ontario portion). That meant most GTA buyers, where the average new-build price exceeds $800,000, got very little back.
The new structure eliminates the full 13% HST on homes up to $1 million and maintains generous relief up to $1.85 million. The federal government is covering its 5% share, with Ontario covering the 8% provincial portion. Total estimated relief: $2.2 billion.
Related Reading on HouseIndex
First-Time Home Buyer Incentives in Ontario (2026)
Full breakdown of every federal and provincial program available to first-time buyers.
Toronto Condo Buyer's Guide 2026
The deepest correction in 30 years, comprehensive guide for navigating the condo market.
How Much House Can You Afford in Toronto?
A realistic look at what your income and savings actually buy in the GTA.
GTA Housing Market Forecast 2026
Actual price data, Bank of Canada outlook, and neighbourhood analysis across the GTA.
Need Help Understanding the Rebate?
Our team can walk you through how the expanded HST rebate applies to your situation, whether you're buying your first home or investing in a new build. Reach out anytime.
Frequently Asked Questions
How much is the Ontario HST rebate on new homes in 2026?
For new homes priced up to $1 million, the full 13% HST is removed, saving buyers up to $130,000. Between $1M and $1.5M the maximum stays at $130,000. From $1.5M to $1.85M the rebate decreases proportionally from $130,000 to $24,000. Above $1.85M the maximum is $24,000.
When does the expanded Ontario HST rebate start and end?
The rebate applies to purchase agreements signed between April 1, 2026 and March 31, 2027. Construction must begin by December 31, 2028 and be completed by December 31, 2031.
Do I have to be a first-time buyer to qualify?
No. The expanded HST rebate is available to all buyers, first-time and repeat, as long as the home is used as a primary residence or a residential rental property.
Can I combine the HST rebate with other incentives?
Yes. You can stack it with the First Home Savings Account (FHSA), the Home Buyers' Plan (HBP), the Home Buyers' Tax Credit, and provincial/municipal land transfer tax rebates. A first-time buyer purchasing a $750K new build in Toronto could access over $200,000 in combined benefits.
Does the rebate apply to resale homes?
No. Resale homes are not subject to HST and therefore do not qualify. The expanded rebate only applies to newly constructed homes, including pre-construction condos and custom builds.
How does the federal government participate?
The federal government covers its 5% portion of the HST, while Ontario covers its 8% portion through the enhanced Ontario New Housing Rebate. The 5% federal share is delivered to buyers through the Ontario New Home Affordability Payment (ONHAP), which is linked automatically to approval of the 8% Ontario rebate, there is no separate provincial application. Together this removes the full 13% HST on eligible new home purchases, representing approximately $2.2 billion in total relief.
Is the expanded Ontario HST rebate now law?
Yes. Ontario Bill 114, the HST Relief Implementation Act, received Royal Assent on May 12, 2026, and Ontario Regulation 196/26 finalizing the provincial top-up was made on June 22, 2026. Federal Bill C-26 received Royal Assent on June 18, 2026, with supporting federal regulations (P.C. 2026-610) established on June 12, 2026. The program is retroactive to April 1, 2026, so buyers who signed and closed before the rules were finalized are still entitled to the rebate.
Which CRA forms do I use to claim the rebate?
When you buy from a builder, the updated Form GST190 and Form RC7190-ON are used, and most builders now credit the rebate directly on the statement of adjustments at closing. Owner-built homes use Form GST191. If your purchase closed before the updated forms were released, you can pay the HST at closing and apply directly to the Canada Revenue Agency for the refund.
Bottom Line
This is the single largest housing incentive Ontario has introduced in years, and as of the summer of 2026 both the provincial and federal halves are fully enacted and retroactive to April 1, 2026. If you're buying a new build between April 2026 and March 2027, you could save up to $130,000 on HST alone, and significantly more when you stack other programs. The window is 12 months. The math is clear.
Official Sources
All information in this article is sourced from Canadian government publications:
- • Ontario Government, Expanding HST Rebate (March 25, 2026)
- • Canada Revenue Agency, Notice 346: Ontario Enhanced New Housing Rebate
- • Canada Revenue Agency, First Home Savings Account (FHSA)
- • Canada Revenue Agency, Home Buyers' Plan (HBP)
- • Ontario, Land Transfer Tax Refunds
- • Canada Mortgage and Housing Corporation (CMHC)
- • Ontario 2026 Budget, HST Relief on New Homes
- • Osler, Hoskin & Harcourt LLP, Ontario HST Rebate Key Details
- • CBC News, Ontario HST Rebate: What You Need to Know